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'Emaar MGF to take all possible action to protect interest'

Press Trust of India  |  new Delhi 

Dubai-based Emaar Properties today said its Indian joint venture, Emaar MGF, will take all possible action to protect the entity's interests amid allegations of irregularities in development of the Commonwealth Games Village.

The company, which is present in India through a partnership with the MGF Group, said the confiscation of the Rs 183 crore bank guarantee furnished by Emaar MGF to the Delhi Development Authority (DDA) will not affect it directly.

In a filing to the Dubai Stock Exchange, Emaar Properties said: "Emaar MGF... Will take all possible action required to protect the company's interests.

"The encashment of the guarantee has no direct impact on Emaar, as the guarantee has been issued through the facilities available to the company in India."

Emaar MGF had provided adequate documentation in respect of regular updates to DDA, including the fact that the authority's contractors were causing damage and were not being supervised, the filing added.

Last week, the Indian government had ordered confiscation of the Rs 183 crore performance bank guarantee furnished by Emaar MGF and initiation of legal action against the firm for recovery of other expenditure over "deficiencies" and "delays" in construction of the CWG Village.

Reacting to reports on the government's order, Emaar MGF had dismissed all charges against it, saying all quality standards were met.

"The Games Village has been built to the highest standards of quality and design... It is pertinent to note that all the project milestones were achieved as per our scope of work," it had said.

The developer had said there were no outstanding dues to any government agencies, including the Delhi Jal Board and BSES.

According to the interim report prepared by the DDA, the developer failed to achieve project milestones in time and make payments to various statutory bodies and agencies like the Delhi Jal Board and BSES for utility services.

First Published: Mon, October 25 2010. 17:48 IST
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